All Courses > Stocks > 300
Stocks 303: Understanding the Statement of Cash Flow

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
On a companys statement of cash flow, the sale of property is recorded as a ______.
Choose wisely. There is only one correct answer.
Cash inflow. It generates incoming cash.
2.
A firms production and sales cash flows are recorded in the _______ section of the statement of cash flow.
Choose wisely. There is only one correct answer.
Operating. The operating section includes inflows and outflows of money related to production and sales.
3.
In which part of the statement of cash flow would you find debt issues recorded?
Choose wisely. There is only one correct answer.
Cash flows from financing activities. Debts are listed in this section.
4.
The statement of cash flow records inflows and outflows of cash as soon as income is earned or expenses incurred.
Choose wisely. There is only one correct answer.
False. It records income and expenses regardless of when they were earned or incurred.
5.
Creditors use statements of cash flow to keep track of their borrowers abilities to repay loans.
Choose wisely. There is only one correct answer.
True. These statements keep them informed about where their borrowers money is going.
6.
The operating activities section of the statement of cash flow covers cash flows associated with _______.
Choose wisely. There is only one correct answer.
Production and sales. It concerns itself with the cash flows of making and selling the companys products or services.